Click here to view the Guide to CME Group Collateral Management Programs

IEF2 IEF2 began in July, 2001. IEF2 is a direct investment in any of CME’s 20 approved institutional classes of Money Market Mutual Funds. CME has established “CME Shareholder Servicing LLC” to support the processing of payments and orders. There is a 3% CME haircut and a 2% regulatory haircut on IEF2 investments. There is a diversification requirement associated with all investments over $100 million. Back to Top IEF3 IEF3 is a specialized collateral program that permits CME clearing firms to pledge Reg. 1.25 collateral that CME does not accept directly. CME has partnered with The Bank of New York (BNY) and JP Morgan (JPM) to support IEF3. Clearing firms are debited cash in the morning and substitute CME approved, Reg.1.25 collateral in the afternoon. The collateral is moved into a tri-party account, controlled by CME, at either BNY or JPM. The deal unwinds on the morning of the next business day and begins again. Back to Top IEF4 IEF4 is also a specialized collateral program that permits CME clearing firms to pledge Reg. 1.25 collateral that CME does not accept directly. CME has partnered with BNY and JPM to support IEF4. IEF4 is a “term” pledge of securities with the “term” defined by the clearing member. Clearing firms transfer securities into a tri-party account, controlled by CME at either JPM or BNY. Substitutions may occur during the business day as long as the “deal” amount is not violated. Back to Top IEF5 IEF5 began in July, 2004. CME has partnered with JPM and Fifth Third Bank in offering this program.  IEF5 is a bank account that pays a monthly “hard dollar” benefit. The “hard dollar” benefit is based on the Fed Funds effective rate. CME processes all transfers on behalf of the clearing firm. Back to Top